Base Investments SICAV

In the Grand-Duchy of Luxembourg, Banca del Sempione SA is the sponsor of BASE Investments SICAV (the “SICAV”), an openend investment company with multiple sub-funds established on 29 May 2001 and registered in the official list of Undertakings for Collective Investment pursuant to the Law of 17 December 2010, Section I.

The sub-funds are characterised by different investment objectives in order to offer a range of possibilities to investors and simultaneously respect their risk propensities. With regard to the individual sub-funds, investment policies were defined and summarised in the prospectus approved by the Supervisory Authorities.

More generally speaking, the main commitment of the investment managers is to preserve the capital invested during the more volatile market phases and implement the most effective strategies to increase the value of the assets during the most favourable phases. This is ensured through diversification of the portfolios and special attention to the control of operational risks.

The ideal minimum investment period is 24/36 months, based on the characteristics of the individual sub-funds.

Effective 1 October 2016, the SICAV appointed Edmond de Rothschild Asset Management (Luxembourg) as management company, assigning to it the Risk Control activities, the calculation of the net asset value as well as the role of Transfer Agent. Banca del Sempione SA continues in its functions as sponsor and manager for all the sub-funds, also taking on the responsibility of Global Distributor.

The most modern management techniques are applied to the activities benefitting the client, with the objective of ensuring the desired return. The constant search for the best technological infrastructures and in-depth analyses that lead to definition of the investment strategies also contribute to mitigating risks.

Starting from the principle that the SICAV’s various sub-funds are invested in transferable securities, where cash is used on an ancillary basis, the company has carefully picked the markets it wants to operate in, focusing mainly on three asset classes (equity, bond, and cash). In addition to the aforementioned asset classes, the SICAV pursues a diversified approach through the adoption of quantitative strategies, such as the search for macro-economic advantages linked to the trend in variables, such as rates, inflation and economic growth, to generate investment opportunities, using all of the investment tools allowed by law or through investment in other funds with a low correlation to the market and a good risk-return ratio.

With the specific objective of offering investors efficient products compliant with their needs, with a view to rationalising the sub-funds and in order to ensure value from their investment policies, the Board of Directors of the SICAV resolved, during its session of 1 December 2016, to liquidate the Equities U.S.A., Equities Switzerland and I.D.E.A. Sub-Funds. At the basis of this decision was the specific desire to optimise the range of products offered, only including those strategies that truly create value over time. The equity segment, dominated by products such as ETFs, typically with passive management but lower costs, was therefore abandoned.

A list of the sub-funds is provided below, with a brief explanation of the respective investment policies:

Base Investments SICAV – Macro Dynamic (launched on 3 October 2016)

The Sub-Fund’s objective is to achieve absolute return by means of a dynamic portfolio with a view to obtaining medium to long-term (3 to 5 years) capital appreciation by combining different assets without any geographical or currency constraints. For that purpose, the Sub-Fund implements flexible asset allocation based on the economic scenario, in the investors’ interest. The benchmark index is Euribor 3 months +2%.

Base Investments SICAV – Emerging and Frontier Markets Equity

The Sub-Fund’s investment objective is long-term capital appreciation by investing at least 51% of its net assets in equity securities of emerging and frontier equity markets companies or those companies which derive a proportion of their revenues or profits from emerging and frontier economies through a value investing stock selection across the entire market capitalisation spectrum. The benchmark index consists of MSCI Emerging (40%), MSCI Frontier (40%) and cash (20%).

Base Investments SICAV – Bonds Value

The objective of this Sub-Fund is to outperform an index consisting of Citigroup EUROBIG All Eurobig (80%) and JPM Cash Index EUR 3 Months (20%), with a time horizon of 3 years, mainly investing in fixed-income securities, having a rating of at least BBB- according to the S&P’s rating system (or an equivalent rating assigned by a different rating agency). The Sub-Fund may invest up to 15% of its total net assets in non-investment grade bonds.

Base Investments SICAV – Bonds USD

The objective of this Sub-Fund is to outperform the SSB EuroDollar Index, with a time horizon of three years, mainly investing in USD–denominated fixed-income securities, having a rating of at least BBB- according to the S&P’s rating system (or equivalent).

Base Investments SICAV – Bonds CHF

The objective of this Sub-Fund is to outperform an index consisting of SBI Foreign Rating AAA Total Return (80%) and JPM Cash Index CHF 3 Months (20%), with a time horizon of three years, mainly investing in CHF–denominated fixed-income securities having a rating of at least BBB- according to the S&P’s rating system (or equivalent).

Base Investments SICAV – Bonds – Multicurrency

The objective of this Sub-Fund is to outperform the Euribor 3 months +1% Index with a time horizon of 3 years, mainly investing in fixed-income securities denominated in EUR having a rating of at least BBB- assigned by S&P’s (or equivalent). The remaining portion of the sub-fund’s total assets may consist of cash with diversification among currencies made through term deposits or investment in derivatives, such as forward contracts and repurchase agreements, currency swaps and currency options.

Base Investments SICAV – Flexible Low Risk Exposure

The objective of this Sub-Fund is to outperform an index consisting of JPM Global Govt. Bond EMU LC. (60%), MTS Italy BOT ex-Bank (30%) and FTSE Eurotop 100 Index (10%), with a time horizon of 3 years, mainly investing in any type of fixed-income transferable security having a rating of at least BBB- according to S&P’s (or equivalent). The sub-fund may also invest up to 20% of its total assets in non-investment grade bonds, shares, other equity market securities, units or shares issued by Undertakings for Collective Investment investing in shares or non-investment grade bonds.

Base Investments SICAV – Short Term

The objective of this Sub-Fund is to outperform the JPM Cash EUR 3 Months Index, mainly investing in fixed- or floating-rate securities, such that the average time to maturity of the securities included in the portfolio does not exceed 12 months.

Base Investment SICAV – Euro Hedging

The objective of this Sub-Fund is to provide an investment instrument linked to the money and bond market invested outside the European currency. It is therefore a product that implies a preliminary choice by the investor aiming at diversifying a portion of his/her/its assets in the currency sense. The investment manager, which must invest at least 85% of the Sub-fund’s assets outside the Euro, is left the task of choosing the best allocation from the foreign currencies exchanged in international markets.

Base Investments SICAV – Lepton

The investment objective of this Sub-Fund is to achieve an absolute return mainly investing in other funds with a time horizon for the investor of 24 months. The funds included in its portfolio shall be compliant with UCITS regulations. The value of each individual fund shall not exceed 20% of the sub-fund’s net assets. Lepton may also invest in other sub-funds of Base Investments SICAV. The selection of the investment shall be based on a steady analysis of the target funds with close attention to the development of the funds industry. The target funds shall adopt liquid investment strategies in order for redemption frequencies to be consistent with the Sub-fund’s.

Base Investments SICAV – Equities U.S.A. (liquidation date: 31 March 2017)

The objective of this Sub-Fund is to outperform the S&P’s 500 Index, in the long term, mainly investing in shares of companies domiciled in the United States or that generate the bulk of their turnover in the United States.

Base Investments SICAV – Equities Switzerland (liquidation date: 31 March 2017)

The objective of this Sub-Fund is to outperform the SLI Index, in the long term, mainly investing in shares of companies domiciled in Switzerland or that generate the bulk of their turnover in Switzerland.

Base Investments SICAV – I.D.E.A. (liquidation date: 31 March 2017)

The investment objective of this Sub-Fund is to outperform the 30% increase in the DJ STOXX 600 Index, over the long term (3 to 5 years), mainly investing in shares. The Sub-Fund aims to develop the alpha coefficient of its individual shares and features low volatility.

With reference to the 2016 performance, it is worthwhile to highlight that the Bonds Value Sub-Fund was awarded the 2016 Sole 24 Ore High Yield Award (“Premio Alto Rendimento”), for the second consecutive year, as it ranked as the best bond subfund within the Euro-diversified category. The award was given to Asset Management Companies and Mutual Funds that stood out by the results achieved in the past three years, as well as to the commitment and professionalism they demonstrated in managing investments based on the fundamental value of investor protection. Three-year yields as at 31 December 2016 were taken into account in the awarding criteria.

Base Investments SICAV

20, Boulevard Emmanuel Servais L – 2535 Luxembourg

info@basesicav.lu www.basesicav.lu

Auditor PricewaterhouseCoopers, Luxembourg